Included in earnings was a tax benefit in connection with the vesting
of equity-based compensation during the quarter of approximately $1.9
million, or $0.13 per diluted share

Repurchased 411,168 shares of common stock at a total cost of $14.0
million under the Company’s share repurchase program

Total inventory was down $6.6 million and was up 0.3 percent on a
per-store basis

Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer
commented, “After a difficult February due to the later tax refund
season as well as inclement weather, we experienced a positive change in
sales for the Easter time period of March and April. Comparable store
sales for the combined months of March and April increased 3.6%. Our
merchants once again did a great job of controlling inventories while
maintaining margin. As we look ahead, we believe we have identified a
strong assortment of key items and a great product mix and we remain
on-track to achieve our outlook for the fiscal year.”

First Quarter Financial Results

The Company reported net sales of $253.8 million for the first quarter
of fiscal 2019, a 1.4 percent decrease compared to net sales of $257.4
million for the first quarter of fiscal 2018. Comparable store sales
decreased 0.2 percent in the first quarter of fiscal 2019.

Gross profit margin for the first quarter of fiscal 2019 decreased 0.4
percent to 29.6 percent compared to 30.0 percent in the first quarter of
fiscal 2018. Merchandise margin increased 0.1 percent and buying,
distribution and occupancy expenses increased 0.5 percent as a
percentage of net sales compared to the first quarter of fiscal 2018.

Selling, general and administrative expenses for the first quarter of
fiscal 2019 decreased $0.5 million to $59.5 million. As a percentage of
net sales, these expenses increased to 23.4 percent compared to 23.3
percent in the first quarter of fiscal 2018.

Net income for the first quarter of fiscal 2019 was $13.9 million, or
$0.91 per diluted share. Included in the first quarter of 2019 was a tax
benefit in connection with the vesting of equity-based compensation of
approximately $1.9 million, or $0.13 per diluted share. For the first
quarter of fiscal 2018, the Company reported net income of $13.0
million, or $0.83 per diluted share.

Store Openings and Closings

The Company expects to open one store and close seven to ten stores
during fiscal 2019 compared to opening three stores and closing 14
stores during fiscal 2018.

Expected store openings and closings by quarter for the fiscal year are
as follows:

New Stores

Store Closings

First quarter 2019

0

2

Second quarter 2019

0

1

Third quarter 2019

1

3

Fourth quarter 2019

0

1-4

Fiscal year 2019

1

7-10

Share Repurchase Program

For the first quarter of fiscal 2019, the Company repurchased 411,168
shares of its common stock, at an average price of $34.08 per share, for
a total cost of $14.0 million. The Company has $36 million remaining
under its existing $50 million share repurchase program as of May 4,
2019.

Fiscal 2019 Outlook

The Company is reiterating its net sales and raising its earnings per
diluted share outlook to reflect the tax benefit recognized in first
quarter of fiscal 2019 as follows:

Net sales in the range of $1.035 billion to $1.043 billion, with
comparable store sales up low single digits;

Earnings per diluted share in the range of $2.73 to $2.83 compared to
its previous range of $2.60 to $2.70. Fiscal 2018 earnings per diluted
share were $2.45.

Conference Call

Today, at 4:30 p.m. Eastern Time, the Company will host a conference
call to discuss the first quarter results. Participants can listen to
the live webcast of the call by visiting Shoe Carnival's Investors
webpage at www.shoecarnival.com.
While the question-and-answer session will be available to all
listeners, questions from the audience will be limited to institutional
investors and analysts. A replay of the webcast will be available on the
Company’s website beginning approximately two hours after the conclusion
of the conference call and will be archived for one year.

Date of Annual Shareholder Meeting

As previously announced, the Company will hold its Annual Meeting of
Shareholders at 9:00 a.m. Central Daylight Time on June 13, 2019 at its
corporate headquarters located at 7500 East Columbia Street, Evansville,
Indiana.

About Shoe Carnival

Shoe Carnival, Inc. is one of the nation’s largest family footwear
retailers, offering a broad assortment of moderately priced dress,
casual and athletic footwear for men, women and children with emphasis
on national name brands. As of May 22, 2019, the Company operates 395
stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com.
Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ
Stock Market LLC under the symbol SCVL. Shoe Carnival's press releases
and annual report are available on the Company's website at www.shoecarnival.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995, that
involve a number of risks and uncertainties. A number of factors could
cause our actual results, performance, achievements or industry results
to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.
These factors include, but are not limited to: general economic
conditions in the areas of the continental United States in which our
stores are located and the impact of the ongoing economic crisis in
Puerto Rico on sales at, and cash flows of, our stores located in Puerto
Rico; the effects and duration of economic downturns and unemployment
rates; changes in the overall retail environment and more specifically
in the apparel and footwear retail sectors; our ability to generate
increased sales at our stores; our ability to successfully navigate the
increasing use of online retailers for fashion purchases and the impact
on traffic and transactions in our physical stores; our ability to
attract customers to our e-commerce website and to successfully grow our
e-commerce sales; the potential impact of national and international
security concerns on the retail environment; changes in our
relationships with key suppliers; changes in the political and economic
environments in, the status of trade relations with, and the impact of
changes in trade policies and tariffs impacting, China and other
countries which are the major manufacturers of footwear; the impact of
competition and pricing; our ability to successfully manage and execute
our marketing initiatives and maintain positive brand perception and
recognition; changes in weather patterns, consumer buying trends and our
ability to identify and respond to emerging fashion trends; the impact
of disruptions in our distribution or information technology operations;
the effectiveness of our inventory management; the impact of natural
disasters on our stores, as well as on consumer confidence and
purchasing in general; risks associated with the seasonality of the
retail industry; the impact of unauthorized disclosure or misuse of
personal and confidential information about our customers, vendors and
employees, including as a result of a cyber-security breach; our ability
to manage our third-party vendor relationships; our ability to
successfully execute our business strategy, including the availability
of desirable store locations at acceptable lease terms, our ability to
open new stores in a timely and profitable manner, including our entry
into major new markets, and the availability of sufficient funds to
implement our business plans; higher than anticipated costs associated
with the closing of underperforming stores; the inability of
manufacturers to deliver products in a timely manner; the impact of
regulatory changes in the United States and the countries where our
manufacturers are located; the resolution of litigation or regulatory
proceedings in which we are or may become involved; our ability to meet
our labor needs while controlling costs; and future stock repurchases
under our stock repurchase program and future dividend payments; and
other factors described in the Company’s SEC filings, including the
Company’s latest Annual Report on Form 10-K.

In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and
involve known and unknown risks, uncertainties and other factors.
Accordingly, any forward-looking statements included in this press
release do not purport to be predictions of future events or
circumstances and may not be realized. Forward-looking statements can be
identified by, among other things, the use of forward-looking terms such
as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,”
“anticipates,” “intends” or the negative of any of these terms, or
comparable terminology, or by discussions of strategy or intentions.
Given these uncertainties, we caution investors not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We disclaim any obligation to update any of these factors
or to publicly announce any revisions to the forward-looking statements
contained in this press release to reflect future events or developments.

Company

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